DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
Speaking at the recent celebration of the dairy industry at parliament she said there was no doubt that the present economic recovery was being driven by the dairy sector. She says the $27 billion in dairy exports is something that every farmer can be proud of.
She added that the sector also had a proud history of innovation and technology.
“Our farmers have been pioneers of new technology now used across the world, from electric fences in the 1930s to rotary milksheds in the late 1960s and to today. The next generation of technology – wearables, data tools and AI solutions – are being homegrown right here in NZ,” she says.
Brown says the history of the sector also gives us another important lesson for the future: sustainability and profitability must be considered together.
She says being the biggest part of NZ’s food and fibre sector brings great responsibility.
“We want to meet the challenge of climate change, emissions & adaptation head-on, to continue to drive improvements in water quality, and to support ecosystem health. When we talk about ecosystem health, we mean something simple: healthy water, healthy land & healthy animals, including thriving fish and insect life. All those elements in harmony are good for New Zealand our farmers and our communities,” she says.
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Brown says every new tool, technique, and innovation at the farm gate is solving today’s challenges while future-proofing tomorrow’s dairy sector. Our success is in those early mornings, the tough calls, and in farmers’ courage to try something new.
Trade Agenda A Key Priority
Ensuring that the dairy industry has good access to overseas markets is a key priority for DCANZ according to it new chair, Guy Roper.
Speaking to Dairy News at a recent parliamentary breakfast, Roper says as an organisation they work closely with MFAT officials to secure access and to ensure the sector is able to extract the maximum value from the various free trade agreements (FTAs) that have been negotiated.
“We need to keep a close watch on these and really understand how many and what NTBs exist in their various forms.
“So far, we have identified 35 of these and are actively working hard with MFAT to bring these to an end,” he says.
Roper says DCANZ has a really important role to play to enable processor and exporters to deliver if there is growth in the industry and also to make sure that the sector operates in a responsible way. He says one thing that is coming through right across the ag sector is that companies need scale to survive and says this is borne out by the number of mergers taking place.
